The cryptocurrency market demonstrated remarkable resilience on May 26, 2023, as over $3.5 billion in combined Bitcoin and Ethereum options expired without triggering the kind of sell-off that many analysts had anticipated. Bitcoin held firm above $26,300, while Ethereum maintained its position near $1,828, signaling strong underlying demand even as massive derivatives positions unwound.
TL;DR
- Over $2.2 billion in Bitcoin options expired on May 26, with a put-to-call ratio of 0.38
- Ethereum saw $1.3 billion in options expire, with a put-to-call ratio of 0.49 and max pain at $1,800
- Bitcoin max pain price was $27,000, well above the spot price at $26,719
- Both assets held support levels despite the massive derivatives expiry
- June options already show over $3 billion in notional value, with max pain at $24,000
The $2.2 Billion Bitcoin Options Expiry
According to Deribit data, more than $2.2 billion worth of Bitcoin options contracts expired on May 26, making it one of the largest monthly expiries of the year. The put-to-call ratio stood at 0.38, indicating that call options significantly outnumbered puts — a traditionally bullish signal suggesting that market participants were positioning for upside rather than downside protection.
The max pain price — the price at which the total value of all outstanding options would expire worthless — was calculated at $27,000. With Bitcoin trading around $26,719 at the time of expiry according to CoinMarketCap data, the spot price was just below max pain, which typically limits the incentive for options market makers to push the price significantly in either direction.
Despite the sheer scale of the expiry, Bitcoin held its ground above $26,300 throughout the session. This resilience suggested that spot market demand was absorbing any selling pressure from options settlement, a trend that has been increasingly characteristic of a maturing derivatives market.
Ethereum Options Add Another $1.3 Billion
Ethereum options added to the week’s derivatives intensity with $1.3 billion in notional value also expiring on the same date. ETH’s put-to-call ratio was 0.49, slightly more balanced than Bitcoin’s but still leaning bullish with more calls than puts in open interest.
Ethereum’s max pain price was set at $1,800, and the asset was trading at approximately $1,828 at the time — slightly above max pain. This positioning suggested that Ethereum options sellers were incentivized to keep the price near the $1,800 level, creating a natural resistance band around that mark.
DeFi Implications of the Options Expiry
For decentralized finance protocols, the successful navigation of such a large options expiry carried meaningful implications. DeFi lending platforms like Aave and Compound, which rely on stable collateral values, benefit when major assets avoid sharp post-expiry drawdowns. The absence of a significant price drop meant that liquidation cascades — which can ripple through DeFi lending markets — were largely avoided.
Decentralized options protocols and structured products built on-chain also closely monitor these traditional market dynamics. The growing notional value of monthly options expiries reflects increasing institutional participation in crypto derivatives, a trend that DeFi protocols are increasingly attempting to capture through on-chain alternatives.
What June Holds
Looking ahead to the June expiry, Deribit data already showed over $3 billion in notional value for Bitcoin options alone, with a max pain price of $24,000 — notably lower than May’s $27,000. This downward shift in max pain could suggest that market makers are positioning for a more defensive stance, or that put option buying has increased at lower strike prices.
The higher notional value in June compared to May also indicates growing open interest and participation in the Bitcoin options market, reinforcing the narrative that derivatives are becoming an increasingly important driver of crypto price discovery.
Why This Matters
The ability of both Bitcoin and Ethereum to absorb $3.5 billion in options expiries without significant price disruption marked a notable step in crypto market maturation. For DeFi, it means that on-chain protocols can operate with greater confidence that major derivatives events won’t trigger the kind of cascading liquidations that plagued the industry in previous cycles. As the crypto derivatives market continues to grow — with June already set to surpass May — the interplay between traditional options flows and DeFi market structure will only deepen, creating both opportunities and risks for participants across the ecosystem.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
$2.2b in btc options expiring with a 0.38 put-to-call ratio and btc barely flinched below 26,300. spot demand is eating options sellers alive.
june options showing $3b notional with max pain at $24k. if btc holds above 26k through june expiry thats going to hurt a lot of put buyers
ETH max pain at $1,800 with spot at $1,828. The market settled right above max pain, which suggests natural buying support was the dominant force.